The Moriarty Tribunal has learned that rumours were rife in the Dáil in 1995 and among civil servants that the second mobile phone licence would be awarded to the Motorola-backed bid.
It also heard that a senior member of Fianna Fáil was alleged to be in line for a big pay off on foot of a successful Motorola bid.
The allegation surfaced in a submission by Mr Mark FitzGerald, of Sherry FitzGerald, the son of Dr Garret FitzGerald who said he had learned of the rumour from Esat boss Mr Denis O'Brien.
The tribunal was today outlining the results of a year-long private inquiry into the circumstances surrounding the award of the State's second mobile phone licence.
Mr Fitzgerald said he had met Mr O'Brien for a drink at an unspecified date in 1995 and that Mr O'Brien had informed him he was applying for the second licence.
Mr Fitzgerald claimed that Mr O'Brien said he faced "an uphill" task in competing with the Motorola-backed consortium and that "there was a rumour that [Former taoiseach] Mr Albert Reynolds was in line for a pay off if Motorola won".
When the tribunal put the claim to Mr O'Brien, he said he had no recollection of ever referring to Mr Reynolds or the Motorola consortium in his meetings with Mr Fitzgerald.
However, the former Fine Gael minister, Mr Michael Lowry, confirmed to the tribunal that he had also heard of the allegation surrounding the Motorola bid during his tenure as minister for transport, energy and communications.
Mr Lowry said rumours were rife in the Dáil and among civil servants that the competition for the second licence was a "foregone conclusion" and that it would go to a major consortium backed by a senior member of the former Fianna Fáil admistration.
However, Mr Lowry said he had found no evidence to substantiate the claim.
Justice Moriarty warned the tribunal that the rumours reported surrounding Motorola and Mr Reynolds had in no way been substantiated.